Pre-close Trading Update

RNS Number : 1904L

Matchtech Group PLC

08 August 2013

 



8 August 2013

Matchtech Group plc

Pre-close Trading Update

Matchtech Group plc (the "Group"), one of the UK's leading specialist engineering and professional services recruitment companies, today provides the following Pre-close Trading Update for the year ended 31 July 2013.

The Group intends to release its Preliminary Results for the year ended 31 July 2013 on 15 October 2013.

Underlying Profit

Since our last update on 11 April 2013, trading in the final 4 months of FY2013 has been encouraging, such that the Board now anticipates that the underlying profit for the year to 31 July 2013 will be slightly ahead of its previous expectations.

Net Fee Income ("NFI")

Performance against previous periods may be summarised as follows:

						Underlying Change v comparable period
	FY2012	FY2013	FY2013	FY2013		FY2013	FY2013	FY2013
	Year	H1	H2	Year		H1	H2
	£m	£m	£m	£m		%	%	%
Contract	24.5	13.2	14.2	27.4		+14%	+10%	+12%
Permanent	10.7	5.3	5.8	11.1		+2%	+5%	+4%
Underlying1	35.2	18.5	20.0	38.5		+10%	+9%	+9%
Discontinued Operations1	0.9	-	-	-
Total	36.1	18.5	20.0	38.5		+8%	+6%	+7%
Business Mix
Contract	70%	71%	71%	71%
Permanent	30%	29%	29%	29%
Contractors on assignment2	6,700	6,700	7,100	7,100		+0%	+5%	+6%
Segmental Split
Engineering	22.8	11.5	12.6	24.1		+6%	+5%	+6%
Professional Services	12.4	7.0	7.4	14.4		+16%	+16%	+16%
Underlying	35.2	18.5	20.0	38.5		+10%	+9%	+9%

¹   Underlying Permanent recruitment fees, which excludes the Discontinued Operations of Executive Search and Financial Services, remained stable, tracking at similar  levels as in H1 2012: £5.2m & H1 2012: £5.5m.

²   At end of period (H2/Year: 31 July; H1:  31 January).

Underlying NFI for the year of £38.5m was up 9% on FY2012. 

The demand for contract staff within Engineering and Connectus, our Technology business within Professional Services, remains strong, fuelled by the global demand for the products and services that our clients offer, along with the continued investment in UK infrastructure programmes.

Contract NFI for the year of £27.4m was up 12% on FY2012.  Contractor numbers have continued to increase and at 31 July 2013 were over 7,100, up 6% on 31 July 2012. 

Permanent recruitment fees have improved by 4% over the course of the year, with H1 FY2013 2% higher than the same period in FY2012 and H2 5% higher.  Whilst demand for highly skilled candidates across all the Group's brands is still very high, the time to hire period has been elongated as candidate confidence remains fragile.

Engineering has delivered a 6% increase in NFI, with continued demand for skilled professional contractors.

With a 47%:53% mix of Permanent to Contract business compared to Engineering's 18%:82%, Professional Services has delivered a 16% increase in NFI.

Net Debt

Debt may be analysed as follows:

31 July 2012	31 January 2013	31 July 2013
£m	£m	£m
14.5	7.9	10.3

Adrian Gunn, CEO, commented:

"2012/13 has been a significant year for Matchtech with major contract extensions, new contract wins and the re-branding of our technology business Connectus.

We will continue to invest appropriately in the infrastructure to support the Group's ambitious growth plans. Our balanced business model and strong niche sector expertise give the Board confidence that the Group will continue to grow and take market share."

For further information please contact:

Matchtech Group plc                              01489 898989

Adrian Gunn, Chief Executive Officer    

Tony Dyer, Chief Financial Officer        

MHP Communications                            020 3128 8100

John Olsen / Ian Payne / Giles Robinson

Numis Securities Limited                        0207 260 1000

Michael Meade / James Serjeant         

 

END

 

 

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